ShapeShift DAO has launched its decentralized, multi-chain, multi-protocol DeFi app on iOS and Android.
The revamped app, launched on October 19, 2022, allows users to trade crypto using various crypto wallets.
Multi-chain, multi-wallet support
According to ShapeShift, users who have downloaded the new app with the old app still on their phone should see a welcome splash screen on the new app. Next, they have to choose between “Create Wallet” and “Import Wallet” options. If they choose “Import Wallet,” they can choose to enter their email address and password, and their wallet seed phrase will be retrieved from ShapeShift’s servers. At press time, the app only supports ShapeShift’s Native Wallet and WalletConnect.
The app presents users with token pairs from major decentralized exchanges in a unified interface and does not charge users.
In addition to Bitcoin, Ethereum, Avalanche, Cosmos, Litecoin and Bitcoin Cash, the multi-chain app Avalanche supports the DeFi ecosystem. It also supports decentralized cross-chain swaps without the requirements of Know Your Customer through Thorchain. Thorchain allows users to trade in a trustworthy manner for an asset on one blockchain for an asset on another blockchain. It achieves this by using bi-directional cross-chain bridges that connect blockchains at the protocol level.
According to ShapeShift co-founder Eric Voorhees, the community developed the no-KYC app without a CEO and formal staff. The front-end of the app is “redundant on IPFS,” the decentralized interplanetary file system. The backend mainly consists of centralized blockchain data managed by the ShapeShift Foundation, which is also planned to be decentralized.
ShapeShift DAO Path to Decentralization
In July 2021, ShapeShift announced That it will be transformed into a Decentralized Autonomous Organization (DAO). According to Voorhees, DAOs are the new post-industrial-era organizational paradigm that allows money and finance to emerge naturally, without centralized authority.
Subsequently, it launched a FOX governance token for its million-strong community, which includes Uniswap, MakerDAO, Curve Finance and Balancer. It circulated 25% of the Fox tokens to the Treasury of the ShapeShift DAO.
The DAO’s plans include integrating NFT marketplace aggregators into the application. Additionally, the DAO will create an interface for aggregating lending rates and borrowing from various protocols to provide users with the best rates.
DAO regulation still questionable
The regulation of DAOs and decentralized protocols in the US is not yet clear. The US Commodities and Futures Trading Commission fined blockchain protocol bZeroX (later Ooki DAO) and founders Tom Bean and Kyle Kistner for violating CFTC regulations. The agency saw Bean and Kistner as the individuals responsible for the DAO’s actions. It is not clear how they reached this conclusion.
After the trial, the agency’s commissioner pointed to a lack of clarity regarding liability.
“We cannot arbitrarily decide who is accountable for those violations based on an unsupported legal principle while federal and state policy is evolving,” Commissioner Mersinger said.
Following the proposal, venture capital firm Paradigm filed another motion to say that only those responsible for registering the DAO under the Commodity Exchange Act should be held liable. The VC firm suggested that summons should be sent directly to the members instead of the usual methods that classify all the members equally.
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